How Cloud Platforms Quietly Power the Backbone of the Games Industry

Illustration of cloud computing, featuring a cloud connected to various digital devices and data interfaces, highlighting the role of cloud platforms in gaming.

A new report from Omdia shows just how much of the modern games industry runs on cloud technology. According to their analysis, cloud platforms now support a $12.9 billion ecosystem made up of game servers, analytics, multiplayer services, LiveOps, and more. The report highlights just how deeply integrated services like AWS, Microsoft Azure, Google Cloud, and Tencent Cloud have become in powering the tools and services behind today’s games.

These aren’t the consumer-facing services most people think about when they hear “cloud gaming.” Instead, they’re the infrastructure layers that studios use to launch and support their games. From matchmaking to performance tracking to real-time updates. And according to Omdia, this part of the industry is growing fast. They expect it to reach $20.9 billion by 2029, with AI technology playing a major role in that growth.

Who the Leaders Are

Omdia’s 2025 Market Radar lists AWS, Microsoft Azure, Google Cloud, and Tencent Cloud as the current leaders in cloud platforms for gaming. Each of these companies supports a wide range of game development needs, including game servers, LiveOps, analytics, and AI-powered services.

All four offer advanced capabilities across nearly every category Omdia measured. This includes multiplayer services, AI and machine learning support, and integration tools that help developers connect different services together. Microsoft and AWS, in particular, show strong coverage across all areas, while Tencent and Google follow closely behind.

The report also adds a new category this year: AI and machine learning. Omdia notes that all four leaders are investing in tools that support AI-driven features, which are becoming more important for developers across genres and platforms.


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Comparison chart of cloud platforms in gaming, highlighting capability levels of leading providers across seven service categories.

Challengers and Hybrid Growth

While the major cloud platforms lead globally, the report also highlights growing competition in specific regions. Tencent Cloud continues to expand its reach, but Alibaba Cloud is becoming a strong competitor in the Asian market. Regional dynamics now influence how studios choose their infrastructure partners.

The report also points to a growing trend in hybrid strategies. Some game studios are combining hyperscalers like AWS or Azure with specialized bare metal providers such as i3D.net and servers.com. This approach gives studios more control over performance, especially for latency-sensitive games or large-scale live service projects.

These hybrid models reflect a shift in how game developers think about infrastructure. Instead of relying on a single provider, studios are mixing services to meet the technical and geographic demands of their games.

AI’s Rising Role

One of the biggest additions to this year’s Market Radar is the new category focused on AI and machine learning. According to Omdia, support for AI use cases is now a key factor for game studios choosing a cloud provider.

Each of the major platforms, AWS, Microsoft Azure, Google Cloud, and Tencent Cloud offers AI tools that help developers automate testing, generate content, or improve analytics. These tools are already being used in different parts of game development, and their importance is expected to grow over the next few years.

Omdia’s forecast shows that the cloud-enabled solutions market will reach $20.9 billion by 2029, with AI named as a major driver of that growth. As demand increases, cloud platforms that support more advanced AI workflows may have an edge when it comes to serving the needs of game studios.

What It Means for Gamers and Cloud Gaming

Most of us never see the cloud platforms behind our favourite online games, but we rely on them every time we connect. Game servers, multiplayer systems, real-time updates, and performance analytics all run on cloud infrastructure. These services help keep games running smoothly across regions, devices, and time zones.

Cloud gaming also depends on this same backend. Services like Xbox Cloud Gaming, Amazon Luna, PlayStation Cloud Gaming, GeForce NOW, and others stream games that are hosted and managed using many of the platforms mentioned in the report. Strong cloud infrastructure ensures lower latency, better matchmaking, and smoother updates, especially for live service games.

As AI tools grow more common, they may also change how content is delivered or how online features are managed. While these developments are still evolving, the foundation is already in place. Cloud platforms are already essential to the gaming experience, even if most people never notice.

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Jon Scarr (4ScarrsGaming)

Jon is a proud Canadian who has a lifelong passion for gaming. He is a veteran of the video game and tech industry with more than 20 years experience. Jon is a strong believer and supporter in cloud gaming, he's that guy with the Stadia tattoo! He enjoys playing and talking about games on all platforms and mediums. Join the conversation with Jon on Threads @4ScarrsGaming and @4ScarrsGaming on Instagram.

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